Data Center: Leasing, It’s All About the Megawatts
The growing importance of electric power is remaking the business of leasing data center space, with megawatts replacing square feet as the primary benchmark for real estate deals.
“Our business is all about leasing access to power,” said Michael Foust, the CEO of Digital Realty Trust, the largest data center developer landlord. “The square footage is almost secondary in some cases.”
DuPont Fabros Technology, another large developer of wholesale data center space, now describes all its leases in megawatts in its financial reporting. As data centers consume more power, electricity is the benchmark that matters, according to DuPont Fabros president and CEO Hossein Fateh.
“Any customer that needs a megawatt – that’s 4,000 servers – better be ready to talk power, or they’re not even qualified to have that job,” Fateh said earlier this year. “What we’re charging for is the availability of power.”
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by Rich Miller for Data Center Knowledge
